Washington Post: Google's new advertising strategy is data-oriented
Google’s new ad spots are data-reliant
Washington Post: Google's new advertising strategy is data-oriented
BY GREG BENSINGER， The Washington Post, May.15th, 2019
San Francisco — A week after introducing new privacy controls for its billions of users, Google has a different message for data-hungry advertisers: We have your back.
SAN FRANCISCO -- A week after introducing new privacy controls for its billions of users, Google is sending a different message to data-hungry advertisers: (Dad A) We support you!
At its annual exposition for advertisers here, the search engine giant on Tuesday rolled out several new ways for marketers to hawk their wares on Google’s products, all based on the reams of data it collects about users. And it is even putting personalized ads on its iconic white Google homepage for users of its mobile app.
At the annual Google Advertiser Expo, the search engine giant on Tuesday unveiled several new marketing methods that allow advertisers to peddle their products on Google's products, all based on the large amount of user data it collects. The company even serves personalized ads to users of its mobile APP on its iconic white Google homepage.
The event was a reminder that despite innovations such as self-driving cars and balloons that beam the Internet, Google is at its core a marketing platform that depends on ad sales for about 85 percent of its revenue. But the company’s ad sales growth slowed in the first quarter, sending shares sharply lower, amid rising competition from Amazon and other tech firms aiming to grab more digital advertising money.
The campaign is a reminder that, despite innovations such as self-driving cars and the Hot Air Balloon Network program, Google's core remains a marketing platform, with about 85 per cent of its revenue dependent on advertising sales. But the company's slowing ad sales growth in the first quarter led to a sharp drop in its share price as competition from Amazon and other technology companies snred for more digital advertising revenue.
Google wants to ensure that customers never miss an opportunity to buy when the spirit moves them. Representing a shot across the bow of Amazon, Google demonstrated how customers who store their credit card information with the company will be able to buy, say, a power drill from Home Depot without ever leaving the search page.
Google wants to make sure that when customers want to buy, they never miss a chance to buy. Google has expressed a desire to steal Amazon's business, showing how customers who store credit card information at Google can buy devices such as electric drills from Home Depot, a home building materials retailer, without leaving the search page.
At another conference last week, geared to developers, Google vowed to give users more control of the data they share on the Internet including by storing more information on mobile phones and tablets, rather than in cloud computing centers. It also is allowing broader use of what’s known as “incognito” mode, which prevents Google and others from linking people to their search histories.
At another developer-facing conference last week, Google vowed to give users more control over the data they share on the Internet, including storing more information on phones and tablets than in cloud computing centers. It also allows for wider use of the so-called "incognito" model, which prevents Google and others from linking people to their search history.
That’s part of a broader trend among tech firms responding to customer complaints about how — and how much of — their data is collected. Facebook, Microsoft and Apple have all emphasized privacy in recent product announcements.
It's part of a broader trend for technology companies to respond to customer complaints about how their data is collected and how much. Facebook, Microsoft and Apple all emphasized privacy at recent product launches.
Those new products could make it harder for marketers to suck up the reams of data they need to personalize ads. User privacy was barely referenced in a news briefing Monday.
These new products can make it harder for marketers to get the amount of data they need to personalize their ads. There was little mention of user privacy at Monday's news conference.
Rather, Google showed new ways that marketers would be able to reach customers willing to part with their money, an industry term known as “intent.” In one iteration, advertisements informed by customers’ previous searches and other online behavior would show up on Google’s iconic search homepage.
Instead, Google has shown new ways for advertisers to reach customers willing to pay, an industry term known as "intent." In a repeat search, ads that provide information from a customer's previous searches and other online behavior will appear on Google's iconic search home page.
The company showed a rolling stream of ads from sites such as furniture retailer West Elm under the Google search bar.
(After the first search for the content, the second time you open Google), its search bar shows a steady stream of ads from sites such as furniture retailer West Elm.
Increasingly, consumers are searching for items on Amazon, where they can also complete their purchase, meaning Amazon is a potent competitor to Google for marketers who want to see how or whether their ads lead to customers to click “buy.” As a result, Amazon has been chipping away at Google’s dominance in ad sales and is expected to grow to 8.8 percent of the market this year from 6.8 percent last year, according to eMarketer, while Google’s share is expected to fall to 37.2 percent from 38.2 percent.
More and more consumers are searching for items on Amazon, and they can do so on Amazon, which means that Amazon is a strong competitor to Google, especially advertisers who want to know how or if their ads will get customers to click "buy." As a result, Amazon has been eating away at Google's dominance in advertising sales. eMarketer expects Amazon's market share to rise to 8.8 per cent this year from 6.8 per cent last year, while Google's is expected to fall from 38.2 per cent to 37.2 per cent.
Brad Bender, an advertising product manager for Google, said the search engine can “anticipate the customer’s wants and needs” and has advanced software that can predict when consumers are most likely to open their wallets.
Brad Bender, Google's advertising product manager, says the search engine can "predict customer demand" and has advanced software to predict when consumers are most likely to spend.
“When you can understand what a consumer is looking for and then show her a personalized ad in the moment she’s ready to discover something new, that’s a win-win,” Bender said.
"It's a win-win situation when you know what consumers are looking for and then show her a personalized ad when she's ready to find something new," Bender said.
The company, based in Mountain View, Calif., said that for its new shopping option it will share the purchaser’s name and address with retailers so that they can keep track of who’s buying what and when. It’s even devoting some workers to customer service to back up the products it features with shipping and other guarantees.
The Mountain View, California-based company said it would share the names and addresses of buyers with retailers in new shopping options so they could track who bought what and when. The company even invests some of its employees in customer service, providing transportation and other guarantees for the products it provides.
That’s likely to attract a raft of retailers who fear that the ease of purchasing directly on Google would compel consumers to buy from a competitor using Google.
That could attract a large number of retailers, who worry that the convenience of shopping directly on Google will force consumers to buy from competitors who use Google.
It is also allowing for similar shoppable ads shown alongside videos on YouTube, which is owned by Google. Oliver Heckmann, an engineering vice president with Google, said content creators, such as product reviewers, would get a cut from advertisements that lead to a purchase when they are shown in a feed below their videos.
It also allows similar shopping ads to be shown next to Google's YouTube videos. Oliver Heckmann, Google's vice-president of engineering, says content publishers, such as the owner of a product-reviewed video, will get a share of the ad revenue and lead users to buy when the ad appears in the feed below the video.
So a reviewer rating lipsticks might have ads that offer one for immediate purchase, meaning a viewer would not have to stop watching a video.
As a result, lipstick reviewers may provide links to immediate purchases in video ads, which means viewers don't have to stop watching videos (and go to shopping sites to search for items).
Squeezing more ads into more places may not move the needle too much, said Brian Wieser, global president of business intelligence at advertising firm Group M. “There’s this presumption that if you can produce more supply there will be more demand; that’s just not true.”
Brian Wieser, global president of commercial intelligence at group M, an advertising agency, says running more ads in more places may not have much impact. But that is not the case. "
He added: “Advertisers have a finite amount of money to spend.”
"Advertisers have limited money," he added.
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